Strategy and Implementation Summary
Grutzen Watches’ strategy is to serve niche markets of the watch industry. It will capitalize on the German engineering and manufacturing used to build the watches. There are many untapped potential markets that desire high-quality goods, but do not think they can afford them or do not know where to purchase them. Grutzen Watches’ marketing strategy will alleviate this problem.
5.1 Marketing Strategy
The marketing strategy will focus on two segments:
- The company will benchmark the objectives for promotion, outlet selling, and personal selling.
- The marketing budget will be $36,000 per year.
5.1.1 Pricing Strategy
The pricing strategy will be to initially undercut our main competitors by 10%, using a market penetration strategy. Then, pricing will be adjusted to be directly competitive with the other major competitors.
5.1.2 Promotion Strategy
Promotion will be initially spearheaded by public relations because of its low cost, and then through advertising once the company begins to increase cash flow to an acceptable figure.
5.2 Sales Strategy
Grutzen’s sales force will consist of Henry Winster and two freelancing sales representatives. Order processing will be achieved through communication between Henry Winster in the U.S. and Franz Grutzen in Germany.
5.2.1 Sales Forecast
The following table and chart show our present sales forecast.
|Year 1||Year 2||Year 3|
|Direct Cost of Sales||Year 1||Year 2||Year 3|
|Subtotal Direct Cost of Sales||$410,000||$500,000||$610,000|
5.2.2 Sales Programs
Sales will be made by Henry Winster and the sales reps. Outlets that achieve the highest figures in sales will receive 2% discounts in order to encourage increasing sales.
This table lists important program milestones, with dates and managers in charge and budgets for each. The milestone schedule indicates our emphasis on planning for implementation.
|Milestone||Start Date||End Date||Budget||Manager||Department|